State Bank of India and State General Reserve Fund of Oman on Wednesday signed a joint venture for setting up a $100-million investment fund.
The initial corpus will be contributed equally by two companies. The fund will be expanded to $1.5 billion in due course and will invest equity in all sectors. The investment fund will currently invest only in India.
Launching the fund, finance minister Pranab Mukherjee said it would open new vistas in economic relations between India and Oman. The initiative is being seen as a catalyst to attract capital from the Gulf region into India.
The two sides had reached an understanding for setting up the fund during the visit of Prime Minister Manmohan Singh to Oman in November 2008.
The Sultanate of Oman is keen on diversifying its oil and gas industry-based economy to a modern industrialised economy and for the purpose the country needs investment in manufacturing, tourism as well as warehousing and other allied industries.
The agreement was signed by SBI chairman OP Bhatt and State General Reserve Fund CEO Warith Al-Kharusi.